South Africa’s economic losses due to power cuts decreased by 83% in the past year due to improved electricity supply measures by Eskom. With an output loss of 481 billion rand, the economy’s GDP slightly rose, showcasing stabilization efforts amidst ongoing challenges in the power sector.
South Africa has experienced a significant reduction in the economic impact of power cuts, with losses declining by 83% last year according to a report by the Council for Scientific and Industrial Research. The economic output lost due to these power outages, locally referred to as loadshedding, has fallen to 481 billion rand ($26.7 billion), a stark contrast to the record losses of 2.9 trillion rand in 2024.
The nation’s gross domestic product reached 4.7 trillion rand last year, reflecting a 0.6% increase compared to 2023. This stabilization in supply is primarily attributed to improvements implemented by Eskom Holdings SOC Ltd., the state utility, which has increased maintenance and enhanced the reliability of its coal-fired power plants that account for the majority of electricity generation.
Despite these improvements, Eskom has recently had to implement intermittent outages, signaling that the situation remains fragile. The utility has also increased the use of auxiliary diesel turbines to manage peak demand. Electricity Minister Kgosientsho Ramokgopa has noted ongoing vulnerabilities in the system, primarily due to delays in procuring additional generation capacity, with the nation’s sole nuclear power station facing operational setbacks.
Eskom is committed to enhancing the performance of its power generation fleet, reporting an average energy availability factor of 60% last year, the best performance since 2021. Moreover, a 3% decrease in electricity demand during 2024 has contributed to the improved power supply, according to Eskom’s statements.
In summary, South Africa has successfully reduced the economic losses caused by power outages significantly, attributed mainly to Eskom’s operational improvements. Although the power supply has stabilized, the system continues to face risks due to procurement delays for additional capacity. Ensuring consistent electricity availability remains a challenge, highlighting the need for continued vigilance and investment in infrastructure.
Original Source: financialpost.com
